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ABComplaalyeenanufactawwjdgutatrased productisigalrod.ucteostmanufacturingd gits sunmanzellaow Direct nataids $29000 Direct labour $16000 Variaddefactoryoverhead $9000 Fixedfactoryoverhead $15,000 Todd nan faduring costs $60,090 Asuppofferprod blowidgetatBleeth:5 . 301ufseight coso$0, 50ewidget

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ABComplaalyeenanufactawwjdgutatrased productisigalrod.ucteostmanufacturingd gits sunmanzellaow Direct nataids $29000 Direct labour $16000 Variaddefactoryoverhead $9000 Fixedfactoryoverhead $15,000 Todd nan faduring costs $60,090 Asuppofferprod blowidgetatBleeth:5 . 301ufseight coso$0, 50ewidget companyi desufrom supplier d thefixedfactoryoverheadwhichrepresents depredationandinsurance costs wistidontintayibavoidbospawn edfewidgate nan faduredhas anarket retd $/500 a) Shouldthecompanycontinuetonakethewidget ar purchaseit from the outside plier b Iftheompalgotes aklevidgehatibehepportunity cost andit's inpact ohnakear-buy ceasian? d Arethereany dhe things that managers needto consider regarding the decisions Solution a Basedomparanalastbeosoproduthej dgets andosobuy itfelt compsloida kathterdouy therid get devine sun$/ 0Savings Direotterials $2000 0 Dirdabor $1600 O Variablefacdayoverhead 19000 Purcharit20,003.30 $300 Fixedctoyerh(Call0%) $1500 0 0 Freight costs (10000x$050) $5000 $9000 Costmanufacthwidgets $000 Fixedtoavoid Sole Costbuyingwidgets $6700 b Iftheompalmgoten a klee widgetemm opportunitybe7 50Onthepaused nanu facturethewagesbearecaniberatedat toate atfor $7500if thecompanychoosestobuy, So.thisisanopportunstly

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